Coal news and updates

Power plants with critical coal stocks down, but imports rise

Increased supply by Coal India has brought down the number of thermal power plants having critical coal stock position to 13 this month from 66 about six months ago, but imports of the fuel have already touched 156.35 million tonne till December in the current fiscal.

Replying to a query in the Lok Sabha on Thursday, coal and power minister Piyush Goyal said, against the fuel supply agreements (FSAs) signed with its buyers with assured supply of 90 per cent for plants commissioned till March 2009 and 65 per cent for those operationalised after March 2009, the PSU has despatched 348.5 million tonne which is 84 per cent of the quantity committed under the FSAs. He cited the Central Electricity Authority (CEA) as saying that coal stocks of major thermal power plants have improved from 7.23 MT last year to 21.21 MT till March this year. “The number of plants carrying critical coal stock has gone down from 66 on October 19 to 13 on March 4 this year,” he informed the House.

However, paucity of coal supply has led to a loss in electricity production during the past three fiscals. The country lost 11.6 billion units (BUs) of electricity in 2011-12, 15.8 BUs in 2012-13, 8.1 BUs in 2013-14 and 2.7 BUs up to February in this fiscal. Attributing this loss of output to lack of adequate availability of coal, Goyal said the CEA had advised power utilities to import the fuel. Between April to December 2014-15, 156.35 MT of coal was imported by various companies against 168.4 MT imported in 2013-14, he pointed out.
The supplies from Coal India could have been better, but for certain reasons like intermittent law and order-related problems in states like Jharkhand and Orissa have hampered coal movement. “Payments constraints of thermal power plants is constraining coal companies to regulate supplies as per the terms under FSAs,” he told the House. Finally mismatch between indents and wagon supply and unloading constraints is also hampering wagon supply to the desired extent, he pointed out.

The coal ministry has also electronically auctioned 33 coal blocks, which would ease fuel supply situation for the successfully bidders for their end-use plants. The auctions have also fetched over Rs 2 lakh crore and the proceeds would go to the governments of the states where the blocks are located, he added.

source: http://indianexpress.com